Business environment plays a major role in changing environment. “Business environment” deals with the climate conditions and factors which affect the macro environment. These are social, economic, political, or organization in which business operations are done. It contains external factors that create opportunities and threats for businesses. These factors are influence by suppliers, media, competitors, government, economic and market condition etc. These forces are affecting business. It is responsibility of manager to consider all factors which affect the strategies policies, procedures and culture of any organisation. This report is based on company Vodafone. It is a British multinational telecommunication company which is headquarters in London. CEO of this company is Vittorio Colao. This provide a wide range of services including voice, messaging, and data across mobile . Further it discuss about various types and purpose of enterprise, scope size, relationship between various function of organisation structure and the factors which are affecting business.
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P3 Relationship between different organisational functions
There are many departments in Vodafone. It is important that company has to make policies which help in easy in workers. There are possibilities that company has to make policies according to changed environment (Cascio, 2018 ). There are many factors which creates link between various departments. It is essential that organisation has to make efforts through which workers can work under changed environment. Vodafone has good image in market, so it is essential that company has to create that environment which helps in performing activities in better way. Some of the departments are discussed below-
Research and development: There is important role of research and development department to make policies effective and efficient. This department helps in performing activities related to consumer and their satisfaction (Deasy and et. al, 2016). It is essential that organisation has to make policies which can be formed with the help of research and development. These days role of manger is increasing as they have to make policies according to need of consumer. It is essential that company has to form policies which provide satisfaction to consumer. There are possibilities that organisation has to give emphasise on customer preference so there will growth of company in form of profits and productivity (Eling and Schaper, 2017).
Operations department: This department is important because they deal with different factors, which has to performed with joint efforts of various other department. It is essential that organisation has to make strategies according to competitor's policies. There are many factors which get attached with each other. There are possibilities that activities are get attached with each other, so operations department reduces the chances of overlapping of activities. There are difference in performing activities of employees, so it is essential that operations department manager has to take care about completion of activities on time. Vodafone is firm which deals in telecommunication, so there is requirement of some activities which help in performing acts in better way, so customer get satisfied with brand and do not switch to other organisation (Goleman, 2017).
Sales and marketing: This is one of the best department which help in enhancement of organisation. Sales and marketing department are two big segments which sounds to be same, but there is difference between two. These departments are closely, linked with one another. Vodafone has good image in market, it is because of up-dations in services, which satisfy demand of customers. It is essential to deliver about new services to consumer, so this helps in improving sales (Zidar and et. al, 2016). When consumer are aware of new product, then they are ready to purchase goods. There are various factors which creates hurdle in marketing such as advertisement, cost, target customer, promotional events, etc. so this must according to budget of company.
Human resource: HR department is closely related to workers, so there is need of some planning which affect due to change in employee's need (Hämäläinen, Näyhä and Pesonen, 2011). Employees are the source which help to achieve targets on time, their satisfaction is one of the best factors which help in performing tasks. There are many policies which need to b changed so efficiency of workers may get improved. As there is need of training due to change in working style, so this is checked by HR department. Timely payment of compensation, reimbursement, performance appraisals, etc. are some factors which are related to employees are controlled by HR manager. It is important that HR manager has to make which help in creating good environment and relations between employer and employees. They resolve conflicts, which may affect performance of workers.
Finance: This is one of the best and important department (Hillary ed., 2017). As in Vodafone, they come with new and innovative ideas to solve demand of consumer. In this case there is requirement of funds. This department keeps record of expenses and incomes. They set standards for expenditure and then all departments plan their activities accordingly. There is requirement of various external sources for smooth working of company. So this is responsibility of finance department to select best source which can be used effectively and easily available. There is requirement to keep proper details of accounts which help in creating funds from market.
P4 Positive and negative impacts the macro environment upon business operations
There are different factors which help in performing activities in better way. There is requirement of various activities which help in performing activities ion better way. PESTLE analysis help in knowing external forces which affect business (Kew and Stredwick, 2017) . There are many factors which affect business, so it is responsibility of manager to take care and reduce impact of macro factors on business. These are not in control of management of Vodafone but PESTLE analysis help in reduce down the negative impact of external forces on business. Positive and negative impact of PESTLE is discussed below-
This factors helps in proper working of Vodafone, as there is control of government, then there are less chances of betrayal. This improves proper functioning and government keep eyes on the. Through political factor consumer has trust factor in brand.
Company has to make policies as per government norms, this creates hurdle in normal working. There are many factors which affect performance of employees. Due to change in political party sometimes Vodafone has to make modifications in their policies.
This is one of the essential factors which can take company upside or downside. This analysis help in getting best option of source of fund and then utilise in better way. As business runs for achieving business objectives, so there is requirement of proper planning.
This may affect business of Vodafone in adverse way, so there is requirement of some negative results. In case company does not get proper source to achieve targets. This affects business in adverse manner.
There must be social approach which help company to expand business. There are possibilities that due to change in customer demand. This helps company to create good brand in market.
This factor is main and effective source which help in performing business but there is requirement of change in business policies, due to which workers may get effected and confused regarding working approach.
This helps in upgrading telecommunication services. There will improvement in product and services and it reduces chances of defects. It is essential that company has to make policies which help in achieving business objectives. It helps in improving working style of workers and it is competent to external world.
As change in technology affects financial status of company. Change in technology results in conflict of actions. It is important that company has to make policies which get affected due to change in technology. Every technology can not be accepted by Vodafone, so this affects performance of company.
There are many laws which improves environment of organisation. There are various laws related to employees which helps in achieving business objectives. Employees satisfaction leads to customer satisfaction. There must be proper job role to workers which help in achieving targets efficiently and on time.
This affects business operations and in case there is need of change in business policies so there is requirement to deliver it to employees. There are possibilities that if company do not modify policies then there is interference of government.
This is one of the best factors which helps company in achieving targets and goals. Vodafone operates in various parts of world, so they have to take care of environmental factor of countries. In case of India there is requirement of more network at the time of Diwali and wedding season, so there is requirement of good services.
Vodafone is the company which deals in telecommunication services, so environments factors affects a lot. There are many problems faced by customer in contacting calls. There are different seasons such as winters, monsoon, etc. which affects services of Vodafone.
P5 Internal and external analysis of organisation with their Strength and weakness
Internal and external factors affect business, so it is important to consider them. Internal factors talks about elements in side the business, but there is requirement of some policies which has to adopted to overcome them. Internal factors includes customer, stakeholders, suppliers, etc. External factors are not in control of management, but they can frame policies which help in reducing negative impact (Kolk, 2016). This analysis is important to achieve targets in better way. There are possibilities that company has to modify their policies due ton change in external or internal factors. It is essential to convey modifications to workers so they can perform activities accordingly (SWOT analysis of Vodafone, 2018).
They cover huge area to render services. They operate in various parts of world, so customer do not get interrupted in case they want to switch from one place to another.
Vodafone use various updated technology to promote their product and services. Vodafone zoo zoo is one of the best example of their advertisement. They have good brand value in market.
USA is the country where Vodafone user are reducing day by day, which affects their growth.
Services of Vodafone are not effective in Europe due to climatic changes.
Vodafone charges high price as compared to other brand.
Rural market is the segment which gives growth prospect of company. They can join hands with mobile companies. These days 4G is in trend but they must try to come with best services and try to switch at 5G. There is problem in network of Vodafone at remote places, so they must come with services which can satisfy need of customer.
Competition is one of the biggest threat in telecommunication industry. Chinese networks are competing with Vodafone. Profits out of this industry is very low, so there is need of good services so more and more people can contact with Vodafone.
These days there is trend of MNP under which customer can change in service provider irrespective of contact number. So this is threat for Vodafone as it is easier for customer to switch to other competitive brand.
Vodafone has to make policies which help them, to reduce chances of failure and there is requirement of proper planning, which help in achieving business objectives. SWOT analysis has to make policies which can be affect due to change in policies of organisation (Li and et. al., 2011). There are many changes taking place in business environment, to make good relations with customer it is essential to make policies which help in satisfaction of their demand. It is not policy to satisfy all demands, so there is requirement to adopt policies which assist change of management.
P6 How strength and weaknesses related to external factors
External factors include components which affect business but not part of business. These factors are more effective as compared to internal factors. There is impact on growth and profitability of company (Prajogo, 2016). It is essential that organisation has to consider them and take corrective actions to overcome them. Vodafone has many strength and weaknesses, so there is requirement to polish strengths and reduce negative impact of weakness. Vodafone works for earning profits, this can be done through customer satisfaction. PESTLE analysis of Vodafone is discussed below-
Political: This factors affect strength and weakness of company. It is important that company has to adopt policies which are affecting business operations. When Vodafone adopt policies framed by government then it helps in enhancing goodwill in market (Smith, 2017). There is requirement of various managerial decisions which help in growth of company. Change in political party affect business and there is requirement of proper guidance with management of company so workers can perform task in better way.
Economical: Vodafone has good customer range but as in UK customer is reducing, so there is requirement of proper finance decision, so they do not get affected due to lack of finance. This factor affect business but as there is requirement of proper analysis so negative results can be adopted. Price of Vodafone services is higher as compared to others, so this may affect business growth. It is essential that approaches must be adopted which help them to reduce cost and increase profits.
Social:This factor says that there is requirement to analyse customer demand because as per change in culture of consumer their demand differ. It is essential that organisation has to make strategies which are beneficial for growth of business (Sodeyfi, 2016). There are many competitors of Vodafone so it is essential to take actions according to strategics of other company in industry.
Technological: This is one of the best factor which help in performing activities in better way. These days technological changes are taking place more frequently. There is requirement of funds to install new techniques and training cost required for employee's. Although this helps in performing activities in better way and reduces chances of defects also.
Legal: There is essential role of legal factor in business which has to perform. In case of alteration in laws, then management of Vodafone also has to apply those changes in business. There is requirement of professional which provide basic knowledge and updations about laws and regulations. Employees may get affected due to change laws related to them and hence their performance may get influenced (Wack, 2017).
Environmental: Environment is the place which has major impact on business. It is essential that company has to frame policies which affect business and it is essential for management of Vodafone to frame policies which can be effective in overcoming weaknesses. Vodafone is company which operates in different parts of world, so this is most effective factor for business.
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From the above discussion it is clear that business has to consider external environment so they can achiever targets. As discussion shows that company has to make policies which are flexible enough to achieve goals and objectives on time. Size and scope of organisation affect their goals and objectives and business operations. There are stakeholders which helps to generate fund and take interest in business operations. Public, private and voluntary associations are organisations which help in performing activities to achieve targets. There is difference in their goals and objectives so they act accordingly. There are many departments which are linked with each other and works to come with new techniques. This file helps to know about macro factors, which includes PESTLE analysis affects which has to be considered by management of company to achieve targets in better way. There is discussion about props and cons of macro factors.
You may also like to read:
- Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
- Deasy, S. and et. al, 2016. Controlling use of a business environment on a mobile device.
- Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects productivity and efficiency of European life insurance companies. European Journal of Operational Research. 258(3). pp.1082-1094.
- Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard Business Press.
- Hämäläinen, S., Näyhä, A. and Pesonen, H. L., 2011. Forest biorefineries–A business opportunity for the Finnish forest cluster. Journal of Cleaner Production. 19(16). pp.1884-1891.